The entries to record a credit sale require all of the following except

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A credit sale means that the customer is buying on credit, so the company is not receiving cash at the time of the sale. Therefore, there should not be a debit to Cash. The other three choices are all necessary to properly record a credit sale: a debit to Accounts Receivable to show that the company is owed money by the customer, a credit to Inventory to reduce the amount of inventory on hand, and a debit to Cost of Goods Sold to recognize the expense of producing the goods sold.

The Entries to Record a Credit Sale Require All of the Following